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Environmental Modernization Planned for Los Angeles Rail Facility

Union Pacific Will Invest up to $300 Million in Intermodal Facility

Omaha, Neb., March 30, 2007 
Union Pacific Railroad today announced a plan to modernize its Intermodal Container Transfer Facility (ICTF) in Los Angeles that will transform the 20-year old facility into the most environmentally modern and most efficient rail port in North America. By using state-of-the-art technology, the nation’s largest railroad will be capable of supporting the predicted growth for port container traffic in Southern California, while at the same time reducing emissions from the facility’s operations.

Union Pacific plans to invest up to $300 million over several years to modernize the facility. ICTF is a near-dock facility located five miles north of the San Pedro Bay Port complex.

"This plan will more than double the capacity of ICTF, but more importantly, the plan modernizes the way in which cargo is handled," said Jim Young, Chairman and Chief Executive Officer of Union Pacific. "The goal of this project is to improve the environmental impact of this facility, while supporting the growth of the ports of Los Angeles and Long Beach."

Environmental and efficiency improvements will be accomplished through the conversion from diesel-powered equipment to the latest, high-tech electric-powered equipment. Ten existing diesel-powered gantry cranes will be replaced with up to 39 specially designed electric-powered, rail-mounted cantilever gantry cranes. The cranes are used to lift containers on and off railcars. This will support the removal of 71 of the 73 existing diesel-powered truck tractors. The two remaining truck tractors will be replaced by two new units that operate with an alternative fuel source.

Additionally, the plan calls for a unique process of stacking of containers under the newly designed cantilever cranes in order to reduce the area required for container storage. This new method of stacking containers eliminates the need to increase the size of the facility, which traditionally would have been required to handle the predicted growth of freight volume coming into the L.A. and Long Beach Ports. This also provides the added benefit of a larger buffer zone between the rail yard and the surrounding community. This breakthrough container stacking method will be made possible by the purchase of specially designed wide-span gantry cranes. To further reduce the impact of this facility on the community, the plan calls for a new hooded lighting system that will direct light toward operations in the 24 x 7 facility and away from adjacent neighborhoods.

Union Pacific’s new design and technology will speed the entry and exit of trucks by installing UP’s state of the art Automatic Gate System which employs Optical Character Recognition for capturing images and converting images into data at the time of both in-gate and out-gate movements. Additionally, Union Pacific’s plans to add additional gate lanes which, combined with the new technology, will reduce the time a truck dwells at the Facility by approximately 50 percent.

Union Pacific will also replace the current switching locomotives with state-of-the-art Genset Switchers, which significantly reduce emissions.

"Union Pacific is committed to seeking out ways to improve the environment," Young said. "We’re also committed to being good neighbors and supporting our nation’s economy by meeting the needs of our customers. The beauty of this plan is that it accomplishes all of these critical goals."

Union Pacific’s application for the ICTF Modernization Plan was submitted to the Port of Los Angeles on March 29. The Port of Los Angeles will have 30 days to review the application for completeness. The increased freight traffic and the revenue it generates make these improvements financially feasible for the company.

About Union Pacific

Union Pacific Corporation owns one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country and serves the fastest-growing U.S. population centers. Union Pacific’s diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad offers competitive long-haul routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada’s rail systems and is the only railroad serving all six major gateways to Mexico, making it North America’s premier rail franchise.

For more information, contact Kathryn Blackwell, 402/544-3753 or 402/319-4288 or Mark Davis, 402/544-5459.

The statements and information contained in the news releases provided by Union Pacific speak only as of the date issued. Such information by its nature may become outdated, and investors should not assume that the statements and information contained in Union Pacific's news releases remain current after the date issued. Union Pacific makes no commitment, and disclaims any duty, to update any of this information.